Technical Analysis: EUR/USD Aims Fresh Increase While EUR/JPY Eyes More Upsides

FXOpen

EUR/USD is consolidating above the key 1.0880 support zone. EUR/JPY is rising and might rally further if it clears the 145.40 resistance zone.

Important Takeaways for EUR/USD and EUR/JPY

  • The Euro started a downside correction from the 1.0970 zone.
  • There is a key bearish trend line forming with resistance near 1.0910 on the hourly chart at FXOpen.
  • EUR/JPY started a steady increase after it found support near 142.50.
  • There is a major bullish trend line forming with support near 144.20 on the hourly chart.

EUR/USD Technical Analysis

On the hourly chart of EUR/USD, the Euro remained well-bid above the 1.0880 zone and started a fresh increase against the US Dollar. EUR/USD was able to break above the 1.0920 resistance level.

The pair tested the 1.0970 zone before it started a correction. There was a break below the 1.0920 level, but the bulls were active near the key 1.0880 support. A low is formed at 1.0876, and the pair is now consolidating.

Immediate resistance is near the 1.0910 level. Besides, there is a key bearish trendline forming with resistance near 1.0910. The trendline is close to the 50% Fib retracement level of the downward move from the 1.0937 swing high to the 1.0876 low.

The next major resistance is near the 76.4% Fib retracement level at 1.0925. A clear move above the 1.0925 level might send the pair toward the 1.0970 level. Any more gains could set the pace for a test of 1.1000.

On the downside, the pair might find support near the 1.0880 level. The next major support sits near the 1.0820 level, below which the pair could even test the 1.0790 support zone.

If there is a downside break below the 1.0790 support, the pair might accelerate lower in the coming days. In the stated case, it could even test 1.0720.

EUR/JPY Technical Analysis

On the hourly chart of EUR/JPY, the Euro formed a base above the 142.50 support zone against the Japanese Yen. The EUR/JPY pair started a decent increase above the 142.80 and 143.00 resistance levels.

The bulls were able to push the pair above the 50% Fib retracement level of the downward move from the 145.42 swing high to the 142.54 low. It is now consolidating above the 144.00 level and above the 50-hour simple moving average.

Immediate resistance on the upside is near the 76.4% Fib retracement level of the downward move from the 145.42 swing high to the 142.54 low at 144.75.

The next major resistance could be near the 145.40 level. If there is an upside break above 145.40, the pair could test 146.00. Any more gains might send the pair toward the 146.80 level.

On the downside, the pair might find support near the 144.20 level. Besides, there is a major bullish trendline forming with support near 144.20.

The next major support is near 143.60, below which there is a risk of a larger decline. In the stated case, EUR/JPY might decline toward the 143.00 level. Any more losses could lead the pair toward 142.50 in the near term.

This forecast represents FXOpen Companies’ opinion only, it should not be construed as an offer, invitation, or recommendation with respect to FXOpen Companies’ products and services or as financial advice.

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Forex Analysis

Commodity Currencies Retreat from Local Highs Market Analysis: AUD/USD and NZD/USD Set Sights on Additional Upside The US Dollar Is Weakening Following Inflation Data Dollar Adjusts After the Publication of Inflation Data in the US Market Analysis: EUR/USD Sees Green as USD/JPY Gains Bullish Traction

Latest articles

Indices

Tech Stocks Back in Vogue as Nasdaq 100 Rallies to Record High

The tech-heavy Nasdaq 100 index (US Tech 100 mini on FXOpen’s TickTrader platform) reached a new all-time high on Monday, closing the trading session at 18,684.2 according to FXOpen pricing, fueled by renewed investor enthusiasm for technology

Commodities

Gold Price Reaches Historic High

According to confirmed information, Iranian President Ebrahim Raisi, considered a potential successor to the country's supreme leader, Ayatollah Ali Khamenei, died in a helicopter crash in a mountainous area near the border with Azerbaijan. The helicopter also carried Foreign Minister

Forex Analysis

Commodity Currencies Retreat from Local Highs

Despite the cooling labour market in the US and declining inflation, the American currency continues to move towards new highs. For instance, the USD/JPY currency pair might update the current month's high at 156.70, the NZD/USD sharply

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.